KENYA’S CORPORATE GOVERNANCE PRACTICES CODE, 2015

The Kenyan Capital Markets Authority (the Authority) has issued a code of corporate governance known as the Code of Corporate Governance Practices for the Issuers of Securities to the Public 2015 (the 2015 Code).

The 2015 Code has replaced the Guidelines on Corporate Governance Practices by Public Listed Companies in Kenya, 2002 (the “2002 Guidelines”). It applies to all companies that issue both debt and equity securities to the public regardless of whether or not they are listed (“Issuers”).

Through the 2015 Code, the Authority advocates the adoption of standards of governance that go beyond the minimum standards set in legislation, including in the new Companies Act 2015. Boards of Issuers are required to formulate additional internal policies and strategies that not only enable their companies to grow but that also protect the interests of shareholders, stakeholders and the community at large. The 2015 Code came into force on 4 March 2016. Issuers are required to implement the 2015 Code within a year of its publication or disclose the reasons for their noncompliance as well as the strategy they intend to implement to come into compliance.